If You Are PLanning To Fill The Gas Tank....

[nofearfactor]

The low prices are a supply issue more than demand.

Correct.

 

[LightningCrash]

So in other words, lower fuel costs are allowing them to avoid layoffs.

They were looking to lay people off when fuel was more expensive?

 

[Hobbes]

Nope. Guys are losing contracts, this doesn't include contracts that will expire from now until mid year. Also to consider is that the oil industry is an integral part of trucking as well. Aside from moving it, lots of guys from here to Houston specialize in moving large and specialized equipment. That's going bye-bye too.

I can think of other industries as well, Well services, Gamma ray companies, Machine shops.....

But I guess those guys should've had a 500k in the bank for a rainy day.

http://www.trucking.org/News_and_Information.aspx

 

[farmerbyron]

Well, let's take it a step further - I run a shop that uses millions of dollars worth of a petroleum product. Oil prices directly affect the profitability of the company I work for. (several thousand employees) If low oil prices drive our costs down, and our profits up, some of that gets passed on to the employees. Why shouldn't I want a better deal for my group, even if it's at the expense of another group?

High oil prices benefitted oil companies and their workers at the expense of everyone else. Now that the shoe is on the other foot it's not so funny. Everybody has good times and bad. It's the oilfields time for a down market now. They've had a helluva good run for 15 years.

 

[Raoul Duke]

It's only a matter of time before the fossil fools start arguing that their industry is too big too fail in Oklahoma and start demanding a government bailout.

 

[Hobbes]

It's only a matter of time before the fossil fools start arguing that their industry is too big too fail in Oklahoma and start demanding a government bailout.

http://www.businessinsider.com/washington-could-bail-out-oil-industry-2016-1

 

[JD8]

http://www.trucking.org/News_and_Information.aspx

Whatcha think you got there ACE? Not that it reflects local or regional trucking companies specifically....

From your link....

“At the expense of sounding like a broken record, I remain concerned about the high level of inventories throughout the supply chain. The total business inventory-to-sales record is at the highest level in over a decade, excluding the Great Recession period. This will have a negative impact on truck freight volumes over the next few months at least. And, this inventory cycle is overriding any strength from consumer spending and housing at the moment” he said.

Looks like he's parroting what I just said. The full realization hasn't even hit yet.

 

[Hobbes]

Whatcha think you got there ACE?

From your link....



The full realization hasn't even hit yet.

Nice cherry picking job there ACE.

Bottom line is when a consumer spends $10 instead of $40 at the pump the $30 difference doesn't just go poof and disappear.
It goes somewhere that it wouldn't have gone otherwise.

 

[Perplexed]

It goes somewhere that it wouldn't have gone otherwise.

A 24-pack of beer, a carton of cigarettes, and a bag of pork rinds?

 

[Hobbes]

A 24-pack of beer, a carton of cigarettes, and a bag of pork rinds?

I didn't say you would like where it goes.